Ten Ways to Run Out of Money Part 4

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June 3, 2020
  • Remembering life expectancy, inflation and ‘too old’ brings us to #4
  • Panicking in the next bear market
    • Only one call and doesn’t count as she was a new client
    • Don’t hesitate to call or schedule a time to come in
    • WE WILL ALWAYS CALL YOU if action is needed
  • Hope for the best, plan for the worst.

Some of you have seen this tool. The idea is that box on the lower right side there has the current investment portfolio in the middle, with an upper and a lower guardrail. When the Investment account goes above or below the guardrails, we make an adjustment to the spending. As long as the account value stays within the boundaries, things stay the same.

The box on the lower left has the numbers that make up the chart on the right. Same data, just a different way to look at it.

  • Like an unknown windy mountain road with cliffs on the edge
  • WHEN, not IF
  • The idea here is to adjust spending if the investment
  • Adjust income accordingly

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